Key Week for Bitcoin and the Dollar Index

Key U.S. economic data may determine the dollar's weakening trend, impacting Bitcoin's movement.

: The upcoming U.S. economic data will likely decide whether the dollar's weakness continues, benefiting Bitcoin and other risk assets. Tuesday's ISM manufacturing PMI report and Friday's nonfarm payrolls are critical. Analysts predict the data will influence the Federal Reserve's rate cuts, favoring BTC. Key technical indicators suggest bearish momentum for BTC.

This week, crucial U.S. economic data, including ISM manufacturing PMI and nonfarm payrolls, will determine if the dollar's weakening persists, providing a tailwind for Bitcoin. The consensus is that Tuesday's ISM index will rise slightly, but any weakness would boost BTC as it could prompt the Federal Reserve to cut rates.

Friday's job data is also pivotal, with a forecast of 165,000 job gains and a drop in the unemployment rate to 4.2%. However, if jobs data disappoints, showing only 125,000 additions and a higher jobless rate of 4.4%, the dollar could continue to decline, further benefiting Bitcoin.

From a technical analysis standpoint, BTC is on the defensive with indicators like MACD histogram and RSI suggesting strengthening downside momentum. If the dollar weakens further, it could increase monetary liquidity, favoring BTC, seen as a risk asset highly sensitive to monetary conditions.

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